Clearwire Notches 2Q Loss

The wireless firm is in the early stages of deploying WiMax and has ambitious plans to aggressively roll it out in the coming months.
Clearwire Corp.'s second quarter loss -- slightly less than a year ago -- disappointed stockholders who sold off the firm's stock, but the WiMax provider held out hopes that its rapidly-accelerating rollout of WiMax will begin showing positive results later in the year.

The firm is still in the early stages of deploying WiMax and has ambitious plans to aggressively roll out the service in the coming months. Clearwire, 51% owned by Sprint Nextel, is keeping the number of its mobile WiMax subscribers close to its vest, although it did say that there was strong WiMax subscriber sign-ups in Portland, Oregon, and late in the quarter in Atlanta.

The company said it is still working on obtaining $2 billion to $2.3 billion in financing.

Clearwire said its revenue for the quarter was $63.6 million and its loss $73.4 million compared with revenue of $58.6 million and a loss of $79.6 million in the same quarter in 2008. The new numbers, although slight improvements, disappointed analysts and stockholders.

"We are already seeing average daily WiMax subscriber uptake in July outpacing what we achieved in June by over 75%," said Bill Morrow, chief executive officer of Clearwire, in a statement. "It is important to keep in mind that at the same time we are posting strong adds in our three CLEAR 4G markets we are also seeing the expected customer attrition in Clearwire's large base of 46 U.S. pre-WiMax markets."

Morrow added that several new market debuts for its WiMax service in 2009 should help Clearwire achieve the "critical mass of coverage and customers that will help propel the company forward in the next year." He added that the firm's mobile WiMax network should be able to cover 120 million persons in 80 markets by the end of 2010.

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